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Amit Mitra

A diagnostic study on the JNPT has sparked off a debate on the issues of port congestion. — Shashi Ashiwal

PUTTING on hold the implementation of the proposed fourth container terminal at Jawaharlal Nehru Port Trust (JNPT) and unbundling of JNPT and Jawaharlal Nehru Port Container Terminal (JNPCT) into two entities are some of the recommendations of a recent diagnostic study on the port.

The study, which has thrown up some major issues related to the port's vulnerability to become a victim of congestion, has uncorked a debate in trade and shipping circles. Different sections of the trade have more or less concurred with the major recommendations of the report.

Mumbai and Nhava Sheva Shipping Agents Association (MANSA) has pointed out that the report had correctly identified the genesis of congestion that hit the port last September. This was attributed to the problems in rail movement of containers.

MANSA, however, discounts the report's claim that the situation has improved since then. "Even when the Three C group met last on May 17, the two terminals had developed a combined inventory of 5,700 TEUs and against a demand of 14 rakes a day, the supply was 11.56," a MANSA representative pointed out.

On the recommendation about unbundling of JNP from JNPCT and NSICT, the association feels that the management of port infrastructure such as navigational approaches and land use policies needed competencies in public governance. On the other hand, the management of the port superstructure, including berths, handling equipment and inland connectivity, needed competencies in corporate governance.

MANSA does not subscribe to the view that the development of the proposed fourth terminal be put on hold. "The country has already lost considerably by the slow process of decision-making and implementation.

By the time the third terminal becomes operational, it will be full. It is imperative that we start working on the fourth terminal with a quay length of 2,000 meters," the representative said.

Commenting on the report, P&O Ports said one of the primary underlying causes of the 2004 congestion seems to have been overlooked by the report. Regulation of tariff at the Central Warehousing Corporation's CFS by TAMP had ensured that CWC was unwilling or unable to accept import containers from the port container yard in spite of having more than adequate space.

In fact, the congestion eased only when special arrangements were made for CWC to accept the import containers, it said.

Container Corporation of India (Concor), which attracted the maximum flak for the congestion problem, feels that the delay in handling of mixed train at JNPT is due to lack of coordination between JNPCT-NSICT and related infrastructure.

"In our view the problem can be resolved if the existing rail infrastructure of six lines inside the port is handed over to a common operator," it says.

Concor feels that it is not proper to lay at its door the entire blame for the congestion. "The report is totally silent on the facts related to congestion at the local CFSs in the port area. JN Port handled 2.4 million TEUs last fiscal, of which less than 30 per cent was moved by rail and the remaining containers were moved between the local CFSs and the port. "Port infrastructure and gate system was a major contributor to the congestion problem at NSICT. The problem was further compounded by the decision of NSICT to restrict unloading of ICD-bound containers, which led to further diversion of ICD traffic to local CFSs.

As far as Concor is concerned, we have actually drawn out 3,200 wagons empty from the port during September-October 2004 on account of non-availability of matching ICD import containers," Concor pointed out.

Central Warehousing Corporation (CWC) comments that Concor should deploy adequate number of rakes. "It (Concor) should also reduce the number of mixed trains so that handling is faster.

To supplement the efforts in rail movement of containers, other agencies such as CWC should be permitted to operate container rakes," it said.

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